I am reading about the legal challenges facing us operating in the cloud. It is huge, a big game changer.

So as I am creating buckets my Amazon S3 Firefox Add-on S3 Fox asks me "Place this Bucket in Europe". Just like that I can put data in the US or in Europe. How does that affect my data, privacy, security, and laws?

Say I was doing something illegal with all this data, what protections do I have. Or how vulnerable am I now?

Would I be better off putting my data in the US Cloud or the European Cloud?